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Index definition

In trading, an index is a grouping of financial assets that are used to give a performance indicator of a particular sector. The plural term is indices.

As indices are only indicators of the collective movements of a group of assets, they have no physical value. For this reason, indices are measured and move in points, rather than in currency.

This also means that indices traders are unable to trade any index directly and instead have to do so through derivative products like CFDs or futures. These products allow traders to speculate on the movements of indices without buying every single asset within.

Several asset classes can have indices, although the best known are stock indices and commodity indices. Every index has its own means of calculating value.

CFDS are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.